AUCKLAND WOOL SALE.

New Zealand Herald, Volume LVIII, Issue 17696, 3 February 1921, Page 4

AUCKLAND WOOL SALE.

OPENING THIS MORNING.

FIRST SINCE REQUISITION.

SMALL CATALOGUE OFFERED.

The first wool sale since the Imperial Government's requisition will take plana in Auckland to-day in the Chamber r.f Commerce Boardroom, commencing at 3 a.m. The catalogue comprises some 8000 bales, mostly crossbred or strong wool. This is a very small offering compared with the quantity handled at the first sale of the season in pre-war days, when Approximately 3*1.000 bales \rere disposed of.

A large number of buyers representing American and Continental firms have arrived, and will be operating to-day. The prices realised at the Wellington w o oi sale on Mondaj- showed that coarse crossbred wool was not popular with buyers, but super crossbreds brought from lCd to lljd a lb.

SYDNEY WOOL SALES

AMERICANS ACTIVE.

Australian and NZ. Cable Association

C&ecd. 12.30 a.m.)

SYDNEY. Feb 2.

At the wool sales to-day there were soma attractive offerings. Others showed of the drought. Japanese and American buyers were again active.

HIGH RESERVES IN LONDON

REPLY TO CRITICISM. PROTECTING THE PRODUCER. [FROM OCR OWN" CORRESPONDENT.] LONDON. Dec. 10 The Parliamentary Secretary of tha British Ministry of Munitions, Mr. James Hope, has issued a further written statement with regard to the wool policy of the Government. This is the outcome of the challenge, by Mr. A. M. Samuel in the House last week, of the wisdom of the Wool Department in refusing to sell Government-owned colonial wools during the past summer at prices which he suggested were then obtainable.

" The wool market has fallec very heavily sine© May last," Mr. Hope wTites. " and assuming that, the Government could have reduced prices without being immediately followed by all other competitive sellers, it is probable that a certain limited quantity of wool might have been sold to better advantage if the prices obtainable in the- summer months had been more freely accepted. The highest estimate that can be placed on the business tins lost is 100,000 bales, against a stock in June last of 290,000 bales. The bids actually made and retused covered a quantity of less than 25,000 bales."

Imperial Policy Explained. The obiects which the department nad in. view in gradually reducing its reserva prices, instead of sharply reducing them or abolishing them altogether, are : (1) To prevent a sudden a.nd disastrous fall which might have had very serious and far-reaching effects on home trade. (2) To allow the wool market to find its newlevel in the Australian and New Zealand auctions, and not to force that down by action in this country, which might have been thought by the Dominions to be precipitate and inimical to their interests. Ifc must be remembered that the sheep-grow-ing industry is vital to Australia and New Zealand, that prices for their wool were kept artificially low frcm 1916 up to March 31, 1919. by Government action, and that wool prices have now fallen to a level which, estimated in gold currency, is on the aiverage at least 10 per cent, below pre-war prices, while almost all other agricultural produce is 60 to 100 per cent, above pre-war levels. "It will be seen, therefore, that tiia course of wool prices has necessarily been •bitterly disappointing to Australian and' New Zealand woolgrowers, and the department feels that it has been justified in avoiding any suspicion of having aggravated the difficulties under which the woolgrowers were now labouring. British traders and manufacturers have not been placed at a disadvantage with any of their competitors, it having been open to therm at all times to obtain their raw material from the cheapest source of supply.*"'

Stocks That Cost £60,000,000. A memorandum, signed by Mr. J. F* Hope, M.P., dealing with th* cost, work, and staffing of the Ministry of Shipping and the Ministry of Munitions, has been published in the form of a White Pap*r- " By far the most important' problem as present in the raw material section of the Ministry is the stock of colonial wool bought in pursuance of war contracts and remaining on hand," the memorandum states. " This, at cost price, at March 31, 1920, amounted to £73,433,789, while to-day the stock remaining approximates some £60,000,000, comprising aboui 2,500,000 bales of Australian and New Zealand wool, about half of which is irt this country and in transit, and half in Australia and Nersv Zealand. The elimination of the Central Powers during the wafl and largely since the armistice, as purchasers of imported wool, has naturally increased the difficulties of the situation. Belgium and France have, to some extent, been purchasing British Government wool, both at Antwerp and in London, but, owing to exchange difficulties, they are* purchasing as little as possible. Germany has made no direct purchase, nor has Austria; but arrangements have lately been made to supply Austria with £800,000 worth of wool." and negotiations are going on in respect of supplies to Poland.

" At present new clip wool, i.e., -woo! shorn since June 30, 1920, •which was no* purchased by the Imperial Government, is beginning to arrive from Australia and New Zeal and. The Australian and New Zealand local sales have been very discouraging, except for fine Merinos and fine crossbreds, an<j the amount gold so far of all descriptions has been negligible. '' There are large stocks of low crossbred wools in South America, whirb are being offered to the Central Powers at very low prices. The fall in prices in the United States and Sonth Africa has also been very marked. It will be seen from the foregoing, therefore, that tLe present position of the wool trade is extremely difficult. To attempt a forced! realisation of £60,000,000 of wool at an early date is, in the first place, imprac.icable, and, in the second place, it would ruin the entire woollen trade of this country if attempted, quite apart from tha fact that Australia and New Zealand a.ip financially interested in the profits realised! on the sale of Government stocks of wool.'^